Article Highlights The medical deduction AGI floor has increased to 10%, up from 7.5%. For taxpayers age 65 or older and their joint-filing spouses, the AGI floor remains at 7.5% until 2017. For all taxpayers subject to the alternative minimum tax (AMT), the AGI floor is 10%. Beginning this tax year, the only medical expenses that you can deduct are those in excess of 10% … [Read more...] about Maximize Your Medical Deductions
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Maximize Your American Opportunity for Education Tax Benefits
Article Highlights: American Opportunity Credit provides up to $2,500 of tax credit for the cost of post-secondary tuition in each of the first four years of attendance. The credit may be partially refundable. Credit is claimed on the tax return of the individual claiming the student’s tax exemption. The $2,500 credit is a per-student limitation, so the credit can be … [Read more...] about Maximize Your American Opportunity for Education Tax Benefits
Did You Collect the Needed W-9s?
Article Highlights: The IRS Form W-9 is used to obtain independent contractors’ tax ID numbers. Tax ID numbers are required when filing 1099s. 1099-MISCs must be issued to independent contractors that are paid $600 or more during the year for performing services for a trade or business. If you used independent contractors to perform services for your business or trade, and … [Read more...] about Did You Collect the Needed W-9s?
December 2013 Individual Due Dates
December 1 - Time for Year-End Tax Planning December is the month to take final actions that can affect your tax result for 2013. Taxpayers with substantial increases or decreases in income, changes in marital status or dependent status, and those who sold property during 2013 should call for a tax planning consultation appointment. December 10 - Report Tips to Employer If … [Read more...] about December 2013 Individual Due Dates
You and the New Medicare Tax
Article Highlights: New additional 0.9% Medicare tax for higher-income taxpayers. Threshold for paying the tax is combined wages and net self-employment income of over $250,000 for married individuals and $200,000 for others. Certain combinations of income and marital status could result in unexpected tax liabilities and penalties. There is a new additional … [Read more...] about You and the New Medicare Tax